Autumn tax package has been published - What are the main changes?

Changes to tax procedure rules

On 30 November 2023, the Autumn Tax Package has been published, containing a number of changes for the tax years 2023-2025. Below we have summarized the most important changes, which affect, e.g., VAT, corporate income tax, personal income tax and other tax rules, and the new rules generated from the termination of the US-Hungary double taxation agreement. The rules on the global minimum tax were presented in a separate newsletter.

Procedural changes

Changes affecting Act on the rules of taxation (entry into force: day after publication)

The monthly reporting obligation is extended to include additional data for the supplement to the '08 return on tax, contributions and other data relating to payments and benefits'.

The amendment introduces an obligation for the taxpayer who has the right to dispose of the site where the automated equipment is operated to report data in the future.

The provision will enter into force on 1 January 2024.

Based on the amendment, persons who start their activities during the year have 30 days from the date of registration with the Tax Authority to submit an application for authorisation to join as a member of a group company taxpayer. Attention, no possibility to submit a request for certification if the deadline is missed!

The provision enter into force on the day following its publication.

In order to protect personal data, the local tax authority may only disclose the data of natural persons, legal entities and other organisations carrying out business activities with a tax debt of HUF 500,000 or more and with a continuous tax debt of 90 days. Another positive change is that the amount of tax arrears that can be included in the list of persons with tax arrears has been increased fivefold (from HUF 100,000 to HUF 500,000).

The provision enter into force on the day following its publication.

The amendment further extends the rights of taxpayers by allowing them to submit comments during the voluntary liquidation within 8 days of receipt of the audit report.

The provision enter into force on the 30th day following its publication.

In the publication list of taxpayers with a large tax deficit, the Tax Authority may only publish the data of natural persons, legal entities and other organisations carrying out business activities, for which the scope of those subject to publication is narrowed. Only natural persons carrying out entrepreneurial activity may be included in the publication list, but only those of them whose tax deficit exceeds HUF 100 million.

The provision will enter into force on 1 January 2024.

Changes affecting the Act on the Tax Administrative Procedure.

The amendment clarifies the conditions applicable to the financial representatives by providing that the bank guarantee requirement can only be executed with a bank guarantee of the representative.

It shall enter into force on the 90th day following its publication.

The amendment contains a special rule clarifying the calculation of the audit deadlines, which applies in the case of succession of companies with the highest tax performance. This means that the time limit for a tax audit of the successor taxpayer, including the tax liabilities of the predecessor, is 120 days if one of the predecessors was one of the taxpayers with the highest tax performance during the period under review or part of it.

It shall enter into force on the 90th day following its publication.

The amendment clarifies the rules on the initiation of unattended checks on vending machines and parcel machines by allowing on-the-spot checks to be initiated without the taxpayer's involvement, in the presence of only two official witnesses, by recording and signing a report.

It shall enter into force on the 90th day following its publication.

If a taxable person wishing to opt for a VAT exemption in a Member State other than the Member State of establishment has application rejected by the Tax Administration and the rejection is based on information provided by the other Member State concerned, i.e. that the taxable person does not meet the threshold for the turnover threshold set by the Member State concerned, the amendment allows the taxable person to appeal to that Member State rather than to the Member State of establishment.

The provision will enter into force on 1 January 2025.

Amendment of the Act on enforcement procedures to be taken by the Tax Authority (enters into force 30 days after publication)

The amendment adds a guarantee rule protecting debtors, according to which the tax authority shall pay interest at the same rate as the default interest from the date of execution of the enforcement from salary until the date of repayment of the tax or budget support unlawfully collected, based on an enforceable document with an invalid content, in the absence of an enforceable document or in possession of an enforceable document but before the due date.

Should you have any questions regarding the autumn tax package, please contact our experts.